I’m sure some of us will be making substantial profit on our holdings of MVIS stock in the year 2010.
I hope you are aware of Long Term Capital Gains Tax going up from 15% in 2010 to 20% in 2011.
Today is the last day to purchase Microvision stock so that when you sell some on the last trading day of 2010… you will still qualify for the 15% rate.
This is from Wikipedia…
“In the United States, individuals and corporations pay income tax on the net total of all their capital gains just as they do on other sorts of income, but the tax rate for individuals is lower on "long-term capital gains," which are gains on assets that had been held for over one year before being sold. The tax rate on long-term gains was reduced in 2003 to 15%, or to 5% for individuals in the lowest two income tax brackets (See progressive tax). Short-term capital gains are taxed at a higher rate: the ordinary income tax rate. The reduced 15% tax rate on eligible dividends and capital gains, previously scheduled to expire in 2008, has been extended through 2010 as a result of the Tax Increase Prevention and Reconciliation Act signed into law by President Bush on May 17, 2006 (P.L. 109-222). In 2011 these reduced tax rates will "sunset," or revert to the rates in effect before 2003, which were generally 20%. President Obama's budget, announced on February 25, 2009, calls for the Capital Gains Tax to be reverted to the 20% rate before the Sunset date of 2011.”
Its not a bad idea to buy today and sell on the last day of 2010 and pay only 15% Long Term Capital Gains Tax.